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Tuesday, 17 November 2009

Government says most North West businesses will see rates fall

The Government confirmed today that the majority of business rate bills in the North West – almost one hundred and fifty thousand – will fall next year as a result of revaluation.

The Government will not collect a penny more of extra revenue as a result of the 2010 revaluation. Regular revaluations ensure the rate each business pays is fair and reflects changes in the relative value of property over time.

The final arrangements for calculating new business rates bills are being published today. Most business properties in the North West (60 per cent) will see falls in their rate bills next year.

For the minority paying more, the Government is putting in place a £2 billion relief scheme self funded by businesses that will limit and phase in increases. The Government is today giving the go ahead for the relief scheme following a consultation.

Overall, as a result of revaluation and the relief arrangements, one million business properties will see an average decrease of £770 in 2010/11.

The Government recently announced that it will remove the requirement to reapply for small business rate relief at revaluation reducing bureaucracy for small businesses and billing authorities.

The Government is also encouraging small businesses to apply for small business rate relief, which can help provide up to 50 per cent off their bill.

Rateable values are only one part of the rates bill. The other is the ratings multiplier - which is applied to calculate final bills. Today the Government is announcing the multiplier has been reduced by 15 per cent - taking it to its lowest level for 17 years. This is designed to ensure the Government does not collect an extra penny from revaluation and that each business pays its fair contribution.

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